second quarter 2018 - volvogroup.com · •volvo fh celebrates 25 years of success . volvo group...

Second quarter 2018 Martin Lundstedt, President and CEO

Volvo Group Volvo Group

Second quarter 2018

2 2018-07-19

Volvo Group

SECOND QUARTER HIGHLIGHTS

Net sales +15.8 bn, up 18%

(+16% excl. currency)

Adjusted operating income increased to

SEK 11.5 bn (8.4)

Trucks’ adjusted operating margin 11.1% (9.4)

Construction Equipment’s adjusted operating

margin 15.1% (13.3)

*Adjustments, see note 7 in Q2 report:

Q2 2017: No adjustments

Q2 2018: Significant one-time item of 818 MSEK

Financial information for 2017 is restated due to implementation of IFRS 15


Second quarter 2018

3 2018-07-19

Volvo Group

VOLUME DEVELOPMENT IN THE SECOND QUARTER


Second quarter 2018

4 2018-07-19

Volvo Group

SERVICE SALES DEVELOPMENT

TRUCKS BUSES VOLVO PENTA CONSTRUCTION

EQUIPMENT


Second quarter 2018

5 2018-07-19

Trucks

• Good demand across the globe

• Stretched supply chain in North America,

stabilizing in Europe

• Sales start of Volvo and Renault medium-duty

electric trucks in Europe in 2019

• Volvo Trucks in platooning research

collaboration with FedEx and North Carolina

Turnpike Authority

• Volvo FH celebrates 25 years of success


Second quarter 2018

6 2018-07-19

Trucks

RENAULT TRUCKS UNVEILS ITS SECOND GENERATION OF ELECTRIC TRUCKS:

A COMPLETE Z.E. RANGE FROM 3.1 TO 26T

TECHNICAL SPECIFICATIONS

RENAULT MASTER Z.E. -Total GVW 3.1t -Real-world operating range: up to 120 km

RENAULT TRUCKS D Z.E. -Total GVW: 16t -Real-world operating range: up to 300 km

RENAULT TRUCKS D WIDE Z.E. -Total GVW: 26 t -Real-world operating range: up to 200 km


Second quarter 2018

7 2018-07-19

• First public on-highway platooning showcase

between a truck OEM and transporter in the U.S

• Volvo Trucks in platooning research collaboration

with FedEx and North Carolina Turnpike Authority

• Volvo’s Cooperative Adaptive Cruise Control

(CACC) using wireless vehicle-to-vehicle (V2V)

communication technology

Trucks

ON-HIGHWAY PLATOONING SHOWCASE


Second quarter 2018

8 2018-07-19

Trucks

MARKET ENVIRONMENT


Second quarter 2018

9 2018-07-19

Trucks

HD/MD: QUARTERLY ORDERS +12% AND DELIVERIES +15%


Second quarter 2018

10 2018-07-19

Trucks MARKET SHARES

HD% 2018 2017


Second quarter 2018

11 2018-07-19

Construction Equipment

• Market growth across all regions, particularly

in China

• EC200D launched in Southeast Asia and India

tailored for general construction

class-leading fuel efficiency and reliability


Second quarter 2018

12 2018-07-19


VOLVO DAYS IN ESKILSTUNA

• First held in 1958, Volvo CE celebrated 60

years of live demonstrations at Volvo Days

• Visitors from more than 70 markets

• Highlights included the new Volvo R70D and

R100E rigid haulers

• A total of 70 machines and vehicles from

Volvo CE and Volvo Trucks were displayed


Second quarter 2018

13 2018-07-19


MARKET ENVIRONMENT


Second quarter 2018

14 2018-07-19


QUARTERLY ORDERS +41% AND DELIVERIES +38%


Second quarter 2018

15 2018-07-19

Buses

• Good order intake mainly driven by North

America, Asia and Nordic Region

• Order intake increased by 63%, deliveries

decreased by 4%

• New platform for long distance coaches

• Demonstration of an autonomous Volvo 7900

• City of Gothenburg ordered 30 full electric

7900 buses


Second quarter 2018

16 2018-07-19

Volvo Penta

• Sales growth continues, especially for industrial off-road engines

• Orders increased by 51% with pre-buy effects ahead of new EU Stage V

• Deliveries increased by 7%

• Live demonstration of self-docking technology - targeting commercial launch in 2020

• Volvo Penta targets to commercialize electric power solutions in 2021


Second quarter 2018

17 2018-07-19

Financial Services

• Strong volume led by North America,

Europe and China

• Parts financing program reaches new high

in North America

• Bus Rapid Transport system investments in

city of Curitiba financed by VFS

• VFS opens captive financing in Slovenia

Second quarter 2018 Jan Gurander, Deputy CEO and CFO


Second quarter 2018

19 2018-07-19

Volvo Group

NET SALES PER MARKET


Second quarter 2018

20 2018-07-19

Volvo Group

ADJUSTED OPERATING INCOME PER BUSINESS AREA





Second quarter 2018

21 2018-07-19

Volvo Group

ADJUSTED OPERATING INCOME CONTRIBUTORS




+ Vehicle volumes

+ Service sales

+ Capacity utilization

+ R&D capitalization

- Selling & admin expenses

- Cash R&D

- Stretched supply chain


Second quarter 2018

22 2018-07-19

Volvo Group – Industrial Operations

CASH FLOW


Second quarter 2018

23 2018-07-19

Trucks

NET SALES

• Delivered HD/MD trucks +15%: - North America +32%

- Europe +3%

• Net sales currency-adjusted +14%: - Vehicles +16%

- Services +10%


Second quarter 2018

24 2018-07-19

Trucks

ADJUSTED OPERATING INCOME


Second quarter 2018

25 2018-07-19


NET SALES

• Delivered machines +38%:

- Volvo +19%

- SDLG +66%

- Large and medium +40%

- Compact +31%

• Net sales currency-adjusted +30%:

- Machines +33%

- Services +9%


Second quarter 2018

26 2018-07-19


ADJUSTED OPERATING INCOME








Second quarter 2018

27 2018-07-19

Buses

NET SALES & ADJUSTED OPERATING

INCOME

• Net sales currency-adjusted -2%:

- Vehicles -5%

- Services +12%

• Adjusted operating income:

+ Service sales

+ Product mix

- Lower volumes

- R&D expenses

• Adjusted operating margin* 3.8% (4.6)





Second quarter 2018

28 2018-07-19

Volvo Penta

NET SALES & ADJUSTED OPERATING

INCOME

• Net sales currency-adjusted +12%:

- Engines +13%

- Services +9%

• Adjusted operating income:

+ Higher sales

+ Product mix

+ R&D capitalization

• Adjusted operating margin* 19.9% (15.5)





Second quarter 2018

29 2018-07-19

Financial Services

CREDIT PORTFOLIO AND PROFITABILITY




1) Excluding positive revaluation effect in Q4 2017 of SEK 897

M related to new tax rates in USA. Reported ROE including

revaluation effect was 23.0% in Q2 2018 (12 months).


Second quarter 2018

30 2018-07-19

Volvo Group

SECOND QUARTER HIGHLIGHTS

Net sales +15.8 bn, up 18%

(+16% excl. currency)

Adjusted operating income increased to

SEK 11.5 bn (8.4)

Trucks’ adjusted operating margin 11.1% (9.4)

Construction Equipment’s adjusted operating

margin 15.1% (13.3)




Financial information for 2017 is restated due to implementation of IFRS 15

second quarter 2018 - volvogroup.com · •volvo fh celebrates 25 years of success . volvo group...

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